Billing when freelancing – overcoming the awkwardness

The decision to become a freelance writer was one of the best I’ve made (along with agreeing to marry my husband and making my most excellent child). It’s provided me with freedom, independence, autonomy and most importantly the power to choose with whom I work. Gone are the days of fighting for recognition, negotiating workplace bullies and pandering to other people’s expectations of what a workday looks like. The added bonus? I get to hang out with my kid a couple of days a week, something I feel extraordinarily lucky to do.

For the past four years, I have been lucky (and maybe a little talented) enough to build a comfortable part time business and worked with some pretty fantastic people to boot. While my business grows, and I consider how to elevate it to the next level I have been reflecting on some of the challenges I faced. Don’t get me wrong, as much as I love what I do, there have been challenges. The most salient of which continues to cast a shadow over me. A shadow I fight instincts to overcome.

What is this shadow, you ask? Getting paid. Yup! I have always found the whole process overwhelming and I wish I had someone to give me some tips.

First things first – what do I charge?

As I have come to understand, there are countless reasons a contractor might amend their rate card. Whether it be industry, not-for-profit status, offering a package or even throwing in the occasional ‘mate’s rates’, the factors are plenty. As a consequence, not many contractors and freelancers will publish their rates.

As a newbie to freelancing, or even just freelancing to a particular industry, attempting to navigate your way to the perfect hourly rate can be tough. If you aim too high, you’ll get undercut. If you aim too low, people may assume you don’t have a quality product. Locating that Goldilocks rate can be a minefield.

Stick to your guns – don’t second guess yourself

You’ve finally locked down your rate and even managed to bag a client. Congratulations! Now, stop negotiating. People will always try and get a deal, and if they think they can scrimp another dollar from you, they will. I’ve had clients come to me, halfway through a job, attempting to slide that rate just ‘ever so slightly’ lower. It’s a damn slippery slope. As much as the Pollyanna inside me wants to believe that no one would try and cheat a humble sole trading freelancer, my experience sadly tells me another story.

You are talented. You have the skills. More importantly, you’ve agreed on a rate. As hard as it is, keep that foot firmly on the ground and do not waver. Interesting side note, after I rejected the further discount, the client never brought it up again. Clients worth their weight will respect you more.

Undercharging – it doesn’t pay off the way you think

As with sticking to your rate, charging a client for the right amount of hours is also a tricky one. I always knew that overcharging was a bad move. Not only can it breed bad blood, but it’s just not the right thing to do. What I didn’t learn until I was on the job was the risk of undercharging.

You think to yourself, “Oh I’ll just absorb this cost because it’s a one off”, or “If I undercharge them, they’re more likely to give me more work”. I wish it were that simple.

You under charge, you set a very sketchy precedent. Expectations will be that you deliver at the lower rate every time. While that may make you feel good about yourself, it doesn’t really put food on the table. By all means offer discounts and packages; they can often be your bread and butter. Just don’t put yourself in a position that you can’t then bill your client what you are owed.

Invoicing and following up

Yikes! What a minefield! Asking people for money is awkward as heck.

Do you ever get that totally unjustified wave of guilt when you walk through a metal detector at the airport? I sometimes get that same weird guilt about invoicing people, especially when we’ve developed a rapport. For those who find it as awkward as I do, you’ve got to remember your service/product is valuable. You’ve earned those dollars. Your clients know it, and shock horror, expect it. Invoice and invoice regularly.

If your clients are dragging their feet on paying, remember that’s awkward for them not you. Don’t feel bad about following up.

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